- 1 - HC-KAR NC: 2025:KHC-D:7855 WP No. 103543 of 2025 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 19TH DAY OF JUNE 2025 BEFORE THE HON'BLE MR. JUSTICE PRADEEP SINGH YERUR WRIT PETITION NO. 103543 OF 2025 (CS-RES) BETWEEN: BASAPPA S/O. SIDDAPPA SHEGUNSHI, AGE: 38 YEARS, OCC: AGRICULTURE & CHIEF PROMOTER, PROPOSED SHRI BASAVESHWAR VIVIDODDESH PRATHMIK GRAMEEN KRUSHI SAHAKARI SANGH NIYAMIT, MUGALKHOD, AT: MUGALKHOD, TQ: RAIBAG, DIST: BELAGAVI-591235. CELL NO. 9008201116. SHIVABASUSHEGUNSHI@GMAIL.COM …PETITIONER (BY SMT. SANJANA S. MUDHOL, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF CO-OPERATION, M.S. BUILDING, BENGALURU-560001. 2. THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETY, RAIBAG, RAIBAG SUB-DIVISION, RAIBAG, TQ: RAIBAG, DIST: BELAGAVI-591201. …RESPONDENTS (BY SMT. MALA B. BHUTE, AGA FOR R1 & R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING 1. TO ISSUE WRIT IN THE NATURE OF CERTIORARI TO QUASH THE IMPUGNED ORDER DATED 15/05/2025 IN NO.AR- 11/RSR/06/2025-26 PASSED BY THE 2ND RESPONDENT VIDE ANNEXURE-E. 2. TO ISSUE WRIT IN THE NATURE OF MANDAMUS DIRECTING THE RESPONDENT NO.2 TO GRANT PERMISSION TO FLOATING OF THE COLLECTION OF THE SHARE AMOUNT FOR PRE- VIJAYALAKSHMI M KANKUPPI Location: HIGH COURT OF KARNATAKA DHARWAD BENCH - 2 - HC-KAR NC: 2025:KHC-D:7855 WP No. 103543 of 2025 REGISTRATION OF THE SOCIETY IN THE NAME OF THE PROPOSED SHRI BASAVESHWAR VIVIDODDESH PRATHMIK GRAMEEN KRUSHI SAHAKAR SANGH NIYAMIT, MUGALKHOD, TQ: RAIBAG, DIST: BELAGAVI, BY ALLOWING THIS WRIT PETITION IN THE INTEREST OF JUSTICE AND EQUITY AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE PRADEEP SINGH YERUR) Heard the learned counsel for the petitioner Miss.Sanjana S. Mudhol and the learned HCGP for the respondents No.1 and 2. 2. The petitioner is an agriculturist and permanent resident of Mugalkhod village, Raibag taluk, district Belagavi. He had not enrolled as member of any of the primary Co-operative Societies. The petitioner and other similarly situated farmers have called for a Gram Sabha meeting at Mugalkhod village to address their grievances and problems suffered by the farmers in the village and therefore, decided to form a society in the name of Shri Basaveshwar Vividodesh Prathamik Grameen Krushi Sahakari Sangh Niyamit, Mugalkhod to the welfare of the farmers in the village. - 3 - HC-KAR NC: 2025:KHC-D:7855 WP No. 103543 of 2025 3. In view of the same, the petitioner made a representation to respondent No.2 on 16.04.2025 to grant permission for floating the share collection from the eligible farmers for registration of the Co-operative Society in the name of Shri Basaveshwar Vividodesh Prathamik Grameen Krushi Sahakari Sangh Niyamit, Mugalkhod. Respondent No.2 sent a letter to the Co-operative Inspector requesting him to submit a report regarding economic viability of the proposed society by a letter dated 25.04.2025 without hearing the petitioner or notifying the petitioner. The Co- operative Inspector submitted a report which was also without notice and knowledge of the petitioner and based on the said report, respondent No.2 without hearing the petitioner passed the impugned order and rejected the proposal for grant of floating of the share collection to the proposed formation of the society by order dated 15.05.2025, which is impugned herein. 4. It is contended by the learned counsel for the petitioner that respondent No.2 has rejected the proposal for floating of the share collection only on the reason that it is - 4 - HC-KAR NC: 2025:KHC-D:7855 WP No. 103543 of 2025 not viable and there could be overlapping of the society, that there are already nine societies registered in the same area. Therefore, the question of the present society being successful for overlapping other Co-operative Societies already existing with the same qualities is against the guidelines prescribed by the NABARD. 5. Learned counsel for the petitioner contends that the said reasoning provided by respondent No.2 is arbitrary, illegal and unsustainable. It is without application of judicial mind. There is no such requirement forthcoming under the Act or the Rules for permitting floating of shares as what is opined by the respondent. Whether there is a chance of success of Co-operative Society and economic viability is the requirement to be considered. No application of mind has been applied by the respondent while passing the impugned order and without even hearing and notifying the petitioner has out rightly rejected the proposal for floating of share collection for formation of the society. 6. Learned counsel for the petitioner relies upon the judgment of a Co-ordinate Bench of this Court in WP - 5 - HC-KAR NC: 2025:KHC-D:7855 WP No. 103543 of 2025 No.103027/2024 (CS-RES) dated 03.06.2024 wherein in similar matter on similar grounds the Assistant Registrar of Co-operative Societies has rejected the application without giving an opportunity to the petitioner to satisfy the requirement and chances of success and viability. The writ petition came to be allowed. Another judgment has been also relied by the learned counsel for the petitioner in WP No.104197/2021 which also goes in favour of the petitioner for the reason that while considering the application for economic viability and success of the floating of shares, the respondent may not look into the existence of societies or viability of the other Co-operative Societies. It is only on the basis of information furnished by the promoters that the Registrar is required to be satisfied on the proposed floating of shares by the Society to have reasonable chance of success and economic viability that is required to be satisfied which has to be considered by the Registrar, which has not been done in the present case. 7. Also it is not the case of the respondent that there are other rival Co-operative Societies which have filed - 6 - HC-KAR NC: 2025:KHC-D:7855 WP No. 103543 of 2025 any complaint or objection to the floating of shares of the present petitioner or formation of the societies. Under these circumstances, there is force in the argument put forth by the learned counsel for the petitioner and is appreciated by this Court for allowing the petition. Hence, the petition is required to be allowed. Accordingly, I pass the following order: ORDER i) The writ petition is allowed. ii) The impugned order dated 15.05.2025 in No.AR-11/RSR/06/2025-26 passed by respondent No.2 vide Annexure-E is hereby quashed. (iii) Writ of mandamus is issued directing the 2nd respondent to grant permission to floating of collection of share amount in the name of Shri Basaveshwar Vividoddesh Prathamik Grameen Krushi Sahakari Sangh Niyamit, Mugalkhod, - 7 - HC-KAR NC: 2025:KHC-D:7855 WP No. 103543 of 2025 Taluka Raibag, subject to the petitioner satisfying other requirements of the Act and Rules and also provide an opportunity of hearing before passing any such order. Sd/- (PRADEEP SINGH YERUR) JUDGE CKK CT-MCK List No.: 1 Sl No.: 104